Question: Please explain marginal effects (e.g. dessert is less appealing once you've had a few plates, the rain bothers you less once you're already soaked), some
Please explain

marginal effects (e.g. dessert is less appealing once you've had a few plates, the rain bothers you less once you're already soaked), some are increasing, and some are constant. Consider the indifference curve below. What kinds of properties of X and Y could plausibly give rise to this indifference curve? (The first word in parentheses describes whether the object is good/bad, the second word is whether the absolute magnitude of the object's effect is diminishing/increasing/constant at the margin). X X is (good, increasing) Y is (good, increasing) ii. X is (good, diminishing) Y is (good, diminishing) iii. X is (bad, increasing) Y is (bad, increasing) iv . X is (bad, diminishing) Y is (bad, diminishing) A) & & (iii.) & (iv.) B) & (ii.) & (iii.) & (ii.) & (iv. ) & (ii.) & (iii.) & (iv. ) (iii.) & (iv.) (ii.) & (iii.) & (iv.) (ii.) & (iii.) (ii.) & (iv.) (ii.) (iii.) & (iv. ) (iii.) (iv.) P) None of (i) to (iv) Answer: F
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